Digital Wallets In Pakistan is undergoing a dynamic shift, fueled by the rise of Electronic Money Institutions (EMIs) and their innovative offerings.
Governed by the oversight of the State Bank of Pakistan (SBP), these entities are redefining the norms of financial transactions, with a primary focus on fostering financial inclusion and advancing Digital wallet payment systems across the nation.
In this article, we embark on an exploration of the EMIs’ realm, shedding light on their significance, the intricacies of the approval process, and the implications for stakeholders amidst the ever-evolving financial landscape of Pakistan.
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Digital Wallets In Pakistan (Authorized Mobile Wallets) | E-wallets In Pakistan
Table of Contents
- Digital Wallets In Pakistan (Authorized Mobile Wallets) | E-wallets In Pakistan
What are Electronic Money Institutions?
The State Bank of Pakistan unveiled Regulations for Electronic Money Institutions (EMIs) in 2019, aimed at promoting Digital Wallets, stimulating innovation within the payments sector, and bolstering financial inclusion, all under the purview of the Payment Systems and Electronic Fund Transfers Act, 2007.
EMIs in Pakistan are expected to introduce interoperable and secure Digital Wallets, thereby propelling the growth of the digital economy and facilitating widespread access to financial services.
Prospective EMI applicants undergo a comprehensive licensing process consisting of three key stages:
- In-Principle approval
- Approval for Commencement of Pilot Operations
- Final Approval
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List of Authorized Electronic Money Institutions (EMIs)
Here are the details about the List of Authorized Electronic Money Institutions (EMIs):
- NayaPay Pvt. Ltd Digital Wallets
- Finja Pvt. Ltd Digital Wallets
- CMPECC Ltd Digital Wallets
- SadaTech Pakistan Pvt. Ltd Digital Wallets
- Akhtar Fuiou Technologies Pvt. Ltd Digital Wallets
- Wemsol Pvt. Ltd Digital Wallets
- TAG Innovation Pvt. Ltd Digital Wallets
- EP Systems Digital Wallets
- Hubpay Pvt. Ltd Digital Wallets
- Careem Payment Solutions Pvt. Ltd Digital Wallets
- YAP Pakistan (Pvt) Ltd Digital Wallets
- Checkout (Private) Limited Digital Wallets
NayaPay Pvt. Ltd.
NayaPay (Private) Limited functions as an authorized Electronic Money Institution (EMI) overseen by the regulatory framework of the State Bank of Pakistan, offering a suite of digital payment solutions designed to cater to the needs of consumers and merchants alike.
Products/Services
- i. E-money wallet for Consumers
- ii. E-money wallet for Merchants
NayaPay obtained approval from the State Bank of Pakistan on August 30, 2021. As per the most recent update, NayaPay’s operational status is listed as “Live”.
Finja Pvt. Ltd.
Finja is a modern digital enterprise dedicated to driving Pakistan’s transition towards digitalization by providing convenient financial solutions to Micro, Small, and Medium Enterprises (MSMEs) and their associated stakeholders.
Products/Services:
- i. E-money Wallet for Consumers
- ii. E-money Wallet for Merchants
Finja obtained approval from relevant regulatory authorities on September 14, 2021. As per the most recent update, Finja’s services are currently live.
CMPECC Ltd.
The State Bank of Pakistan (SBP) guided M/s CMPECC (Pvt) Ltd on October 23, 2023, regarding its classification under the Regulations for Electronic Money Institutions (EMIs).
Products/Services:
- i. E-money Wallet for Consumers
- ii. E-money Wallet for Merchants
M/s CMPECC (Pvt) Ltd obtained approval from the State Bank of Pakistan on March 22, 2022. According to the most recent update, M/s CMPECC (Pvt) Ltd’s electronic money services are currently active.
SadaTech Pakistan Pvt. Ltd.
SadaTech Pakistan Private Limited, trading as SadaPay, is a fintech firm founded in 2019 and based in Islamabad, Pakistan, dedicated to providing innovative financial solutions.
Products/Services:
- i. E-money Wallet for Consumers
- ii. E-money Wallet for Freelancers
SadaPay obtained regulatory approval for its operations from relevant authorities on April 18, 2022. According to the latest update, SadaPay’s electronic money services are currently operational.
Akhtar Fuiou Technologies Pvt. Ltd.
Akhtar Fuiou Technologies Pvt. Ltd., a leading fintech enterprise, has received authorization from the State Bank of Pakistan (SBP) to commence pilot operations for an Electronic Money Institution (EMI) license.
Products/Services:
- i. E-money Wallet for Consumers
- ii. E-money Wallet for Farmers
Approval from the State Bank of Pakistan was granted to Akhtar Fuiou Technologies Pvt. Ltd. on November 23, 2023. As per the most recent update, Akhtar Fuiou Technologies’ electronic money services are operational.
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Wemsol Pvt. Ltd.
Wemsol Private Ltd, founded in 2011, is an innovative payment and technology solutions provider focusing on servicing the financial and retail industries, prioritizing customer contentment.
Products/Services:
- i. E-money wallet for Consumers and Merchants
- ii. Payment Gateway for Consumers and Merchants
Wemsol Private Ltd received approval from relevant regulatory authorities on July 08, 2020. According to the latest update, Wemsol has been granted pilot approval.
TAG Innovation Pvt. Ltd.
TAG Innovation (Private) Limited, commonly known as TAG, specializes in providing digital wallet and payment services tailored for consumers.
Products/Services:
- i. E-money Wallet for Consumers
TAG obtained approval from the relevant regulatory authorities on October 07, 2022. There has been a recent update regarding the regulatory status of TAG’s operations. Initially granted In-Principle approval.
EP Systems
EP Systems, headquartered in Lahore, Punjab, is a prominent player in the financial services sector, offering two innovative fintech products: OneLoad and OneZapp.
Products/Services:
- i. E-money Wallet for Consumers
- ii. E-money Wallet for Merchants
EP Systems obtained approval for its operations from relevant regulatory authorities on January 18, 2023. The latest update reveals that EP Systems has been granted pilot approval.
Hubpay Pvt. Ltd.
Hubpay Limited, a company registered under the laws of the Abu Dhabi Global Market (ADGM) with registration number 000004051, operates under the supervision of the Financial Services Regulatory Authority (FSRA) and is licensed to provide Money Services with Financial Services Permission number 190024.
Products/Services:
- i. E-money Wallet for Consumers
- ii. E-money Wallet for Merchants
Hubpay Limited obtained approval for its operations on February 02, 2022. According to the latest update, Hubpay Limited has been granted In-Principle Approval.
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Careem Payment Solutions Pvt. Ltd.
Careem Payment Solutions Pvt. Ltd. specializes in delivering digital financial services, primarily centered around offering an electronic money wallet tailored for consumers.
Products/Services:
- i. E-money Wallet for Consumers
Careem Payment Solutions Pvt. Ltd. obtained approval for its operations on August 28, 2023. In the latest update, it has been reported that Careem Payment Solutions Pvt. Ltd. has withdrawn its In-Principle Approval.
YAP Pakistan (Pvt) Ltd.
YAP Pakistan App (Pvt) Ltd. specializes in delivering digital financial solutions, primarily emphasizing the provision of an electronic money wallet tailored for consumers.
Products/Services:
- i. E-money Wallet for Consumers
YAP Pakistan (Pvt) Ltd. obtained approval for its operations on April 29, 2022. According to the latest update, YAP Pakistan (Pvt) Ltd. has been granted In-Principle Approval.
Checkout (Private) Limited
Checkout (Private) Limited focuses on delivering digital financial solutions specifically designed for merchants, addressing their unique payment processing needs.
Products/Services:
- i. E-money Wallet for Merchants
- ii. E-Commerce Payment Gateway for Consumers and Merchants
Checkout (Private) Limited obtained approval for its operations on April 05, 2023. In the latest update, it has been reported that Checkout (Private) Limited has withdrawn its In-Principle Approval.
Important Details:
- In-principle approvals are granted by the State Bank of Pakistan (SBP) to Electronic Money Institutions (EMIs) following a meticulous assessment of the EMIs’ application under the Regulations for EMIs, considering the information provided by the EMIs.
- It’s imperative to understand that the issuance of an In-Principle approval does not signify an endorsement of the proposed business model, financial feasibility, or any other aspect of the EMIs by the SBP.
- The SBP explicitly states that it does not assume responsibility for any financial, legal, or reputational losses incurred by entities or individuals that establish a business relationship with the respective EMI based on the In-Principle approval letter.
FAQs | Digital Wallets
What are Electronic Money Institutions (EMIs) in Pakistan, and how are they regulated?
EMIs in Pakistan are entities authorized by the State Bank of Pakistan (SBP) to provide digital financial services, such as e-money wallets and payment solutions. They are regulated under the Regulations for Electronic Money Institutions (EMIs) by the SBP.
What is the significance of In-Principle approvals granted by the State Bank of Pakistan (SBP) to EMIs?
In-principle approvals are crucial milestones in the regulatory process for EMIs. They signify that the SBP has reviewed the application and provided preliminary approval for the establishment of the EMI, pending further requirements.
Are In-Principle approvals from the SBP a guarantee of the EMI’s business viability or financial stability?
No, In-Principle approvals should not be interpreted as endorsements of the EMI’s business model, financial viability, or any other aspect by the SBP. They indicate initial regulatory approval but do not guarantee business success or stability.
What responsibilities does the State Bank of Pakistan (SBP) bear regarding In-Principle approvals issued to EMIs?
The SBP explicitly states that it does not bear responsibility for any financial, legal, or reputational losses incurred by entities or individuals that establish a business relationship with the respective EMI based on the In-Principle approval letter.
Can EMIs operate without regulatory approvals from the State Bank of Pakistan (SBP)?
No, EMIs must obtain regulatory approvals from the SBP to operate legally in Pakistan. Without such approvals, their operations would be considered unauthorized and may be subject to regulatory action.
What updates should stakeholders expect after an In-Principle approval is granted to an EMI?
After an In-Principle approval, stakeholders should anticipate further updates regarding the EMI’s progress in meeting regulatory requirements, such as the transition to pilot operations and the eventual issuance of a final license.
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